In-App Purchases are In, Paid Apps are Out

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Information about In-App Purchases are In, Paid Apps are Out

Published on July 31, 2013

Author: techahead



A new report focused on app price changes over time by app analytics provider Flurry confirms the trend toward more mobile applications going free continues.

In-App Purchases are In, Paid Apps are Out

A new report focused on app price changes over time by app analytics provider Flurry confirms the trend toward more mobile applications going free continues. Flurry, whose analytics service now runs in nearly 350,000 mobile applications, found that around 80 to 84 percent of iOS apps were free between 2010 and 2012, but by 2013, 90 percent of iOS apps in its network were now free. But it doesn’t mean that the free apps aren’t making money, of course. Apps often generate revenue through advertisements, in-app purchases, or by pushing a portion of their users to premium, paid version of a mobile app – perhaps for the purpose of removing the ads. In this latter scenario, the upgrade cost to go ad-free is typically $0.99 or $1.99.

In the report Flurry explored and revealed preference for free content over content free of ads by examining four years worth of pricing information for the nearly 350,000 apps that used Flurry Analytics. The answered questions like, what are consumers choosing? Let’s see the various trends that exist in “free content vs. content free of ads” battle

Users on Android are less willing to pay for mobile apps than those on iOS

Among those developers who carefully tested users’ willingness to pay at various price points, there was a notable move to free apps in recent months.

While consumers may not like in-app advertising, their behavior makes it clear that they are willing to accept it in exchange for free content, just as we have in radio,TV and online for decades. In light of that, it seems that the conversation about whether apps should have ads is largely over. Developers of some specialized apps may be able to monetize through paid downloads, and game apps sometimes generate significant revenue through in-app purchases, but since consumers are unwilling to pay for most apps, and most app developers need to make money somehow, it seems clear that ads in apps are a sure thing for the foreseeable future. Given that, we believe it’s time to shift the conversation away from whether there should be ads in apps at all, and instead determine how to make ads in apps as interesting and relevant as possible for consumers, and as efficient and effective as possible for advertisers and developers. Conclusion

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